Asiamet Drilling Expands High Grade Zinc Rich Polymetallic Mineralisation at BKZ
Asiamet Resources Limited ("ARS" or the "Company") is pleased to announce that follow up scout drilling at the BKZ prospect has intersected further near surface high grade base and precious metal rich mineralisation along strike of earlier hits (refer ARS Press Release February 23, 2017). While further drilling is still required to determine the ultimate dimensions and continuity of the mineralised body, these latest results are highly significant and provide confidence for a potential stand-alone high grade polymetallic deposit.
BKZ is located approximately 800m north of the Company's feasibility stage BKM Copper Project in Central Kalimantan, Indonesia. Being the most easily accessible, BKZ is the first of multiple targets outside BKM currently being tested in the wider BK district. To date, six holes (592.7metres) that have been drilled to test a zone of massive sulphide outcrops over an area of 150m x 100m have intersected polymetallic mineralisation, however assay results are only yet available for two holes. Further results will be reported as assays are received.
Highlights of the results received to date include:
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BKZ33700-01
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3.2m at 1.15g/t Gold and 67.8g/t Silver (from 1.8 metres)
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7.0m at 3.7% Zinc, 1.3% Lead, 46g/t Silver, 0.24g/t Gold,1.0% Copper (from 5.0 metres)
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BKZ33700-02
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39m at 7.3% zinc, 2.3% lead, 33g/t silver and 0.33g/t gold (from 41 metres)
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Incl. 23m 11.1% zinc, 3.8% lead, 50g/t silver and 0.42g/t gold (from 41 metres)
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The current BKZ scout drilling program is focused on expanding the Zinc-Lead-Silver-Gold mineralisation intersected in historical drill holes (BKZ-1, BKZ-2, BKZ-3), where BKZ-1 (123.1m End of Hole 'EOH') reported 9.47% Zn, 4.87% Pb, 0.26% Cu, 96.5g/t Ag and 0.56g/t Au over 8 metres from 6.0 metres (refer ARS Press Releases February 23, 2017).
The first hole, BKZ33700-01 (92.2m EOH), was drilled 45m northwest of BKZ-1 and intersected oxide gold mineralisation from top of hole to 5 metres depth, followed by strong polymetallic sulphide mineralisation to 12m depth. The host rock is a polymict breccia cut by cm-scale quartz - sulphide veins. This hole was drilled on the western margin of the known mineralisation, and drilled through the mineralised zone at approximately 15m depth into a sequence of unmineralised volcanic rocks.
The second hole BKZ33700-02 (113.9m EOH) was drilled 63m northeast of BKZ-1 and 75m east of BKZ33700-01. This hole intersected a broad zone of quartz-sulphide mineralisation over a downhole interval of approximately 40 metres from 41m depth. The polymetallic mineralisation intersected in this hole confirms the geometry of the mineralisation seen in the adjacent historical holes BKZ-1, 2 and 3, of a quartz-sulphide body approximately 40-50 metres in true thickness. This broad intersection of polymetallic mineralisation comprises quartz-sulphide veins to massive sphalerite (zinc), galena (lead), chalcopyrite (copper) and pyrite (Figure 2), within an interpreted low-angle thrust fault.
The strong results received to date indicate that the high-grade zinc-lead-silver-gold-copper mineralised system at BKZ has excellent potential to develop into a stand-alone deposit located less than 800m north of the Company's feasibility stage BKM Copper Project. The mineralisation remains open in all directions and at depth, and drilling to date indicates the mineralisation is increasing in grade to the east. The focus of the ongoing drill program is to expand the massive and semi-massive sulphides by completing step-out drilling to the north, south and east. There is currently one rig active, positioned on BKM33700-04 and testing the eastern extensions to the high-grade polymetallic mineralisation intersected in BKM33700-02.
A drill hole location plan and a table of full assay results are provided in Figure 1 and Table 1 respectively.
Peter Bird, Asiamet's Chief Executive Officer commented:
"Asiamet is extremely pleased with the initial follow up drill results from our BKZ prospect, the first of multiple targets to be drilled in the BK district over the coming months. The base and precious metals grades received to date are exceptional and of a similar tenor to those reported at some of the highest quality base metals mines globally. While a substantial amount of further drilling is required to ultimately determine the dimensions and continuity of the mineralisation, we are now more confident of BKZ developing into a stand-alone deposit discovery with the potential to share infrastructure with any proposed mine development at BKM. We have consistently stated our belief that the potential of the KSK COW is vastly greater than BKM alone and these early results re-enforce that view. Our ongoing drill programs will continue to target additional copper resources to further strengthen the BKM project and to test the numerous polymetallic targets evident in our surface exploration data, all of which we anticipate will unlock very significant value for our stakeholders. We look forward to reporting further results from this exciting phase of our work as they come to hand."
Qualified Person
Data disclosed in this press release have been reviewed and verified by ARS's qualified person, Stephen Hughes, P. Geo, Vice President Exploration of the Company and a Qualified Person within the meaning of NI 43-101 and for the purposes of the AIM Rules.
ON BEHALF OF THE BOARD OF DIRECTORS
Peter Bird, Deputy Chairman and CEO
For further information, please contact:
-Ends-
Peter Bird
Deputy Chairman and CEO, Asiamet Resources Limited
Telephone: +61 3 8644 1300
Email: peter.bird@asiametresources.com
Tony Manini
Executive Chairman, Asiamet Resources Limited
Telephone: +61 3 8644 1300
Email: tony.manini@asiametresources.com
FlowComms Limited
Sasha Sethi
Telephone: +44 (0) 7891 677 441
Email: Sasha@flowcomms.com
Asiamet Resources Nominated Adviser
RFC Ambrian Limited
Andrew Thomson / Stephen Allen
Telephone: +61 8 9480 2500
Email: Andrew.Thomson@rfcambrian.com / Stephen.Allen@rfcambrian.com
Optiva Securities Limited
Christian Dennis
Telephone: +44 20 3137 1903
Email: Christian.Dennis@optivasecurities.com
This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterised by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014 ("MAR").
Table 1: Recent drill intercepts.
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HOLE ID
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From
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To
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Length
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Zinc
(%)
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Lead
(%)
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Silver
(g/t)
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Gold
(g/t)
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Copper
(%)
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BKZ33700-01
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1.8
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5.0
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3.2
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NSA
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NSA
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67.8
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1.15
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0.10
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BKZ33700-01
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5.0
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12.0
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7.0
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3.70
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1.27
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46.2
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0.24
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1.03
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BKZ33700-02
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41.0
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80.0
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39.0
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7.32
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2.35
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33.0
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0.33
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0.18
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Including
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41.00
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64.00
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23.00
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11.12
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3.79
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49.9
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0.42
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0.17
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Includes
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41.00
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53.00
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12.00
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15.62
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5.72
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75.1
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0.48
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0.22
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BKZ33700-02
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85.0
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88.0
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3.0
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4.02
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0.38
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9.4
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0.11
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NSA
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Notes: Grade intercepts are calculated as a weighted average grade >=1.0% Zinc (uncut). True widths are interpreted to be between 80-100% of the reported lengths, unless otherwise stated. Orientation of the mineralised domain is estimated to have an azimuth of 340 degrees and a dip of -25 degrees to the northeast.
Figure 1: Location map showing strong zinc in soil geochemistry over the BK district with prospects & drill collars. To view the graphic, please open the link to the PDF version of the announcement: http://n.eqs.com/c/fncls.ssp?u=FNEKIXVYHA
Figure 2: Massive Sphalerite (Zn sulphide) and Galena (Pb sulphide) mineralisation grading downhole into strong Galena-Sphalerite mineralisation associated with quartz veining. The interval 44-45m assayed 30.3% Zn, 16.3% Pb and 120g/t Ag. To view the graphic, please open the link to the PDF version of the announcement: http://n.eqs.com/c/fncls.ssp?u=FNEKIXVYHA
Glossary of Technical Terms
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"g/t"
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grams per tonne; equivalent to parts per million ('ppm').
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"Mineral Resource"
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A "Mineral Resource" is a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilised organic material including base and precious metals, coal, and industrial minerals in or on the Earth's crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge.
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"Inferred Resource"
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An "Inferred Mineral Resource" is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.
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"Indicated Resource"
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An "Indicated Mineral Resource" is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parametres, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.
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"Measured Resource"
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A "Measured Mineral Resource" is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parametres, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.
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"CIM"
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The reporting standard adopted for the reporting of the Mineral Resources is that defined by the terms and definitions given in the terminology, definitions and guidelines given in the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral resources and Mineral Reserves (December 2005) as required by NI 43-101. The CIM Code is an internationally recognised reporting code as defined by the Combined Reserves International Reporting Standards Committee
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"Preliminary Economic Assessment"
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NI 43-101 defines a PEA as "a study, other than a pre-feasibility study or feasibility study, which includes an economic analysis of the potential viability of mineral resources"
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"Induced Polarisation Geophysics"
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Induced polarisation (IP) is a geophysical survey used to identify the electrical chargeability of subsurface materials, such as sulphides. The survey involves an electric current that is transmitted into the subsurface through two electrodes, and voltage is monitored through two other electrodes.
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"Chargeability"
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Chargeability is a physical property related to conductivity. Chargeability is used to characterise the formation and strength of the induced polarisation within a rock, under the influence of an electric field, suggesting sulphide mineralisation at depth
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"outcrop"
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A section of a rock formation or mineral vein that appears at the surface of the earth. Geologists take direct observations and samples from outcrops, used in geologic analysis and creating geologic maps. In situ (in place) measurements are critical for proper analysis of the geology and mineralisation of the area under investigation.
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"polymetallic"
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three or more metals that may occur in magmatic, volcanogenic, or hydrothermal environments; common base and precious metals include copper, lead, zinc, silver and gold
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"anomaly or anomalous"
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something in mineral exploration that geologists interpret as deviating from what is standard, normal, or expected.
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"mineralisation"
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In geology, mineralisation is the deposition of economically important metals (copper, gold, lead, zin etc) that in some cases can be in sufficient quantity to form mineral ore bodies.
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"covellite"
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Covellite is a copper sulphide mineral with the formula CuS. This indigo blue mineral is ubiquitous in some copper ores
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"chalcocite"
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Chalcocite is a copper sulphide mineral with the formula Cu2S, and is an important copper ore mineral. It is opaque and dark-gray to black with a metallic luster.
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"bornite"
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Bornite, also known as peacock ore, is a copper sulphide mineral with the formula Cu5FeS4
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"chalcopyrite"
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Chalcopyrite is a copper sulphide mineral with formula CuFeS2. It has a brassy to golden yellow color
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"galena"
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Galena is the natural mineral form of lead (II) sulphide, with formula PbS. It is the most important ore of lead and an important source of silver. It has a silver color
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"sphalerite"
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Sphalerite is a zinc sulphide in crystalline form but almost always contains variable iron, with formula (Zn,Fe)S. It can have a yellowish to honey brown or black color
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"hypogene"
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Hypogene ore processes occur deep below the earth's surface, and form deposits of primary minerals, such as chalcopyrite and bornite.
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"supergene"
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Supergene ore processes occur near surface, and form deposits of secondary minerals, such as malachite, azurite, chalcocite, covellite, digenite, etc.
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"breccia"
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Breccia is a rock classification, comprises millimetre to metre-scale rock fragments cemented together in a matrix, there are many subclassifications of breccias.
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"polymict"
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A geology term, often applied to breccias or conglomerates, which identifies the composition as consisting of fragments of several different rock types.
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"veins"
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A vein is a sheet-like or anastomosing fracture that has been infilled with mineral ore (chalcopyrite, covellite etc) or mineral gangue (quartz, calcite etc) material, within a rock. Veins form when minerals carried by an aqueous solution within the rock mass are deposited through precipitation and infill or coat the fracture faces.
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"volcanics"
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Volcanic rock such as andesite or basalt that is formed from magma erupted from a volcano, or hot clastic material that erupts from a volcano and is deposited as volcaniclastic or pyroclastics
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"sediments"
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Sedimentary rocks formed by the accumulation of sediments. There are three types, Clastic, Chemical and Organic sedimentary rocks
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"surface rock chip samples"
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Rock chip samples approximately 2kg in size that are typically collected from surface outcrops exposed along rivers and mountain ridgelines
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"azimuth"
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the "compass direction" refers to a geographic bearing or azimuth as measured by a magnetic compass, in true or magnetic north
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"diamond drilling"
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A drilling method in which penetration is achieved through abrasive cutting by rotation of a diamond encrusted drill bit. This drilling method enables collection of tubes of intact rock (core) and when successful gives the best possible quality samples for description, sampling and analysis of an ore body or mineralised structure.
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"grade"
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The proportion of a mineral within a rock or other material. For copper mineralisation this is usually reported as % of copper per tonne of rock (g/t)
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"assay"
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The laboratory test conducted to determine the proportion of a mineral within a rock or other material. For copper, usually reported as percentage which is equivalent to percentage of the mineral (i.e. copper) per tonne of rock
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"sequential assays"
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Sequential copper analysis is a technique to semi-quantitatively define the zonations associated with some copper deposits. The method is based on the partial dissolution behavior displayed by the prevalent copper minerals to solutions containing sulphuric acid and sodium cyanide. Results from sequential analyses can theoretically determine the amounts of leachable oxide minerals, leachable secondary sulphide minerals, and primary copper minerals, respectively.
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"dip"
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A line directed down the steepest axis of a planar structure including a planar ore body or zone of mineralisation. The dip has a measurable direction and inclination from horizontal
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"open pit mining"
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A method of extracting minerals from the earth by excavating downwards from the surface such that the ore is extracted in the open air (as opposed to underground mining)
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"intercept"
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Refers to a sample or sequence of samples taken across the entire width or an ore body or mineralised zone. The intercept is described by the entire thickness and the average grade of mineralisation
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"grab sample"
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are samples of rock material collected from a small area, often just a few pieces or even a single piece of rock "grabbed" from a face, dump or outcrop or roughly 2-5kg. These are common types of rock samples collected when conducting mineral exploration. The sample usually consists of material that is taken to be representative of a specific type of rock or mineralisation.
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"channel sample"
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Samples collected across a mineralised rock exposure. The channel is typically orientated such that samples are collected perpendicular to the mineralised structure, if possible
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"lbs"
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Pounds (measure of weight)
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"Mlbs"
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Million pounds (measure of weight)
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.